You might be asking yourself, “What is a sneaker blog doing writing about Wall Street investment bank Goldman Sachs”? Well this story is a lot more interesting than you may think.
The Wall Street kings recently met up with Josh Luber who is the owner of Campless, a company that tracks the sales of sneakers on eBay. The report that Goldman Sachs issued shows that sales of high priced sneakers have declined for the first time since January of 2012 when Campless first started tracking eBay sales.
Josh Luber credited several factors to this decline in sales, including market saturation, a declining number of people who collect sneakers and a “weak slate of Jordan releases at higher price points.”
The analysts said the slowdown “could have negative sales implications at Foot Locker and Finish Line.” The analysts also noted a “cyclical fashion shift away from high priced performance athletic footwear to casual athletic.”
Goldman Sachs has sell ratings on Foot Locker and Finish Line.
So there you have it folks, it looks like it’s finally happening, the resale market is taking a loss. All of the factors above will make resellers think twice before buying 500 pairs of the Air Jordan 5 “Midnight Navy” this weekend because they just might end up having to wear those bad boys since no one wants to pay over retail for them anymore.
How do you feel about the dip in sales for the secondary market? Are you surprised to see this or did you know it was coming eventually with the new prices of Jordans rising this year?